AutoBeta(AutoBeta.net)03/17 Report--

SAIC-Volkswagen launched a "car-limited cash discount" on the evening of March 16, with a total discount of 3.7 billion yuan and a maximum of 50, 000 yuan for bicycles, according to official sources. The subsidy campaign, which will last until April 30, covers all cars under the SAIC Volkswagen brand.

In terms of specific models, the Tuang family and the Tuguan family have a time-limited discount of 35000 yuan and 25000 yuan respectively, and both SUV cars can enjoy a five-year zero interest rate and a replacement subsidy of 60, 000 to 10, 000 yuan. As for cars, the Passat family has a time-limited discount of 25000 yuan; Lang Yi car series has a time-limited discount of up to 25000 yuan; Lingdu L has a time-limited discount of 15000 yuan; and Huieng has a discount of 50, 000 yuan, which is the model with the highest preferential intensity. Passat family and long Yi car series can enjoy the credit policy of 0 interest rate for 5 years and 0 interest rate for 2 years respectively.

In addition, SAIC Volkswagen new energy ID. There are also many discounts for pure electric series, including 2023 ID.6X and 2023 ID.4X both for 30, 000 yuan and 2023 ID.3 for 20, 000 yuan. SAIC-Volkswagen official said that the 3.7 billion yuan car purchase subsidy policy covers all models under the SAIC-Volkswagen brand, and the reason why the brand chooses to reduce prices is, on the one hand, to actively respond to national policies and consumer environment; on the other hand, after marketing changes, SAIC-Volkswagen can respond quickly to changes in the end market.

On March 1, the media reported that SAIC Volkswagen had completed the reform of the marketing system at the beginning of this year, including the adjustment of the national sales and service center network of the Volkswagen brand, that is, the original 12 marketing regions were reduced to eight, and strengthen the authority of the marketing regional team. In addition, the authority of SAIC-Volkswagen marketing region has also changed, for example, the region has more power to formulate marketing strategies and call resources to the headquarters. at the same time, the regional personnel structure has also been adjusted to strengthen the front-line personnel of the market. form an "iron triangle" of marketing, sales and after-sales. This change is also the second time SAIC-Volkswagen has adjusted its marketing system since March 2022.

As one of the earliest joint venture car companies in China, the industry believes that whether it is the reform of the marketing system or the choice of price reduction, in essence, SAIC-Volkswagen's series of actions may be forced by sales pressure. SAIC-Volkswagen sold more than 2 million vehicles for four consecutive years from 2016 to 2019, including 2.0651 million in 2018 and 2.0018 million in 2019, according to the data. Among them, sales fell to 1.5055 million in 2020, to 1.4571 million in 2021, a double-digit decline for two consecutive years, and to 1.2435 million in 2022, a gap from the peak of more than 2 million.

Sales performance is still not optimistic after entering 2023. According to the data, SAIC-Volkswagen sold 154600 vehicles in the first two months of 2023, ranking fifth among domestic manufacturers in terms of retail sales, of which February sales were 74000, down 7.8 per cent from a year earlier.

In addition to SAIC and Volkswagen, Changan Automobile also announced on March 16 to follow the "subsidy wave", including CS75 series, UNI-V, Yitou PLUS and other major models with varying degrees of preferential subsidies. Among them, CS75 series limited time comprehensive discount up to 33000 yuan, including cash reduction of 10,000 yuan to high rights subsidy of 23000 yuan; UNI-V limited time comprehensive discount up to 22000 yuan, including cash drop of 5000 yuan, up to 17000 yuan of subsidy In addition, the UNI-V Smart iDD just launched by Changan Automobile has also joined the subsidy camp, with a time-limited comprehensive discount of up to 26000 yuan, including a cash drop of 10, 000 yuan and a maximum rights subsidy of 16000 yuan.

In addition to the direct drop in cash, Changan Automobile has also launched a "one-bite price" model, of which the new CS75 Blue Whale version has a direct cash drop of 30, 000 yuan, a mouthful price of 83900 yuan; Yat PLUS cash drop of 20, 000 yuan, a mouthful price of 73900 yuan; CS35 PLUS cash drop of 15000 yuan, a mouthful price of 78900 yuan. Prior to this, Changan Automobile has launched the "10 billion Hui Private car season" policy, under which consumers who pick up their cars from March 1 to March 31 (all Changan passenger cars are all arbitrary models) can enjoy additional 1,000 yuan car coupons. In addition, the relevant car consumption subsidies issued before April 30 will be given cash subsidies in accordance with the corresponding policy standards.

In addition, on the same day, GAC GROUP announced that consumers would enjoy subsidies provided by manufacturers when they place orders to buy GAC GROUP's GAC MOTOR, Guangzhou Auto Honda and Guangzhou Auto Toyota fuel models from March 15 to 31, and complete the licensing within the agreed time. There is also a chance to get the Yue A blue license free of charge. Among them, the purchase of GAC MOTOR hybrid models can be subsidized by 10, 000 yuan, while the purchase tax can be halved; the purchase of GS3 movie speed, shadow cool, shadow leopard can enjoy a 20% discount for 3 years' policy support; GAC-Honda all-line models comprehensive discount up to 80, 000 yuan; GAC-Toyota provides a factory subsidy of 5000 yuan, replacement subsidy up to 10, 000 yuan and financial services up to 2 years 0 interest policy. Prior to this, Feng Xingya, general manager of GAC GROUP, said that after entering 2023, domestic automobile consumption was slightly weak, subsidies and tax cuts declined in a large area, and consumers' desire for consumption of commodities had not yet recovered, and he also proposed to directly subsidize consumers. and extend the car purchase tax relief policy and other suggestions.

In addition to the preferential subsidies announced by car companies, a piece of news released by Chengdu on March 17 has also become the focus of the auto market. According to the news, from today, the automobile consumption activity of "production and marketing linkage" in Longquanyi District was officially launched, with a total subsidy of 100 million yuan and a cumulative subsidy of up to 150000 for bicycles. This event will become a Huimin car purchase activity with the largest discount range, the largest number of locally built new energy brands and the longest duration in the history of automobile promotion in Chengdu.

According to "Chengdu release", the event will last until June 30, 2023, and the brands participating in the event include pure electricity, hybrid electricity and plug-in. The subsidy method of this activity is divided into two ways: one-time car purchase subsidy and car consumption coupon deduction. The models participating in the event include designated models of FAW-Volkswagen, FAW Toyota, Volvo, Dragon Motor, Dayun Automobile, Lecker, Red Flag and other enterprises. Individual or corporate consumers buy the above models at the car dealers operating in Chengdu and license them within the prescribed time limit, superimposing the preferential subsidies matched by enterprises, and each car will receive an one-time subsidy ranging from 15000 yuan to 150000 yuan.

Recently, domestic car companies are experiencing an unprecedented "price war", and "price reduction tide" has become a key word in the automobile industry. According to incomplete statistics, up to now, at least 30 car brands have participated in the "price war" through subsidies from manufacturers or price cuts by dealers. More than 100 models in the auto market have participated in "preferential subsidies" activities, ranging from a few thousand yuan to more than 100,000 yuan, and some car companies that have announced that they will not reduce prices have also chosen "price preservation" measures to deal with the price war.

With regard to car market subsidies, Cui Dongshu, secretary-general of the National passenger car Market Information Association, said: "it is now the high point of the scale of this' price war', and it is unlikely that we will continue to expand the scale of price cuts. It is expected that around April, this round of 'price war' will end." According to the Federation of passengers, retail sales in the passenger car market were 1.39 million in February, up 10.4 percent from the same period last year and 7.5 percent from the previous month. However, due to the overdraft caused by the traditional Spring Festival holiday in January and the policy switch, retail sales totaled only 2.679 million in the first two months of 2023, down 19.8 percent from the same period last year. With the domestic automobile policy and multiple concessions of auto companies in March, it is expected that the sales performance of the auto market in March will be significantly improved.

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